Humboldt

A:

Humboldt County school districts will have to shed an estimated $29 million when the first dollar goes into Proposition 2's School Account. This will force the reduction of Humboldt County school districts' local carryover funds from an average of 29% now, to just 8%. The largest districts, Eureka City, Fortuna Elementary, McKinleyville Union Elementary, and Northern Humboldt Union High, will be allowed just 6%, while most districts can carry 8% and the smallest ones a bit more.

Compare these allowed carryovers with California Department of Education and Government Finance Officers Association recommendations of a MINIMUM of 15-17% in reserves -- and the state's late payments to schools in all recent fiscal years. Humboldt County schools will be allowed to carry just $10 million forward.

When the next downturn hits, Humboldt County districts will have almost no local cushion. In this last downturn, note that the State had not paid Humboldt districts $17 million it owed them in June 2012, $6 million in June 2013, and $6 million just this June 30th -- two fiscal years after Prop 30 passed.

Districts would have been hard pressed to fund these internally; instead they would have had to borrow or slash instruction.

Note that two of the districts are shown in red because the California Department of Education qualified its certification of these districts' financial condition during some or all of the 2012-2014 period. Despite their challenged financial state, these financially challenged districts will have to spend down over $8 million of their ongoing operating funds when the state school 'savings' account receives any deposits!